I’m curious, what’s your alternative to copyright?
The simplest, obvious alternative is copyright, only less terrible. The current term of copyright is an order of magnitude too long. As much distaste as I have for government granted monopolies, I could be convinced that the least bad option is copyright with a term in the 2-20 year range (patent duration is 20 years, for comparison).
Another alternative is compulsory, flat-rate licencing. There’s a set fee for the use of the work, which anyone can pay to use the work and the copyright owner is required to accept (they can also accept a lower fee if they choose). Content creators still get compensation, via the fee, but the monopoly rents they receive are capped by the fee. It also prevents problems like the issue of orphaned works: if the owner is unclear, users can acquire a licence at the compulsory rate from the copyright office (and the owner can collect the royalties from the office if ownership becomes clear again). Note that systems like this aren’t new. A number of compulsory licences already exist in the United States, applicable to certain types of works and situations. Balancing exactly what the licence fees should be in a broadly expanded system of compulsory licenses would be a challenge.
A somewhat more radical alternative is direct compensation. Essentially, content creators are paid directly, and the intellectual property is placed in the public domain. The advantage of this system is that bribing a would-be monopolist to release their monopoly using money from the people who would otherwise pay monopoly prices provides a Pareto improvement on a monopoly. Compared to a direct subsidy, using a government grant of monopoly like copyright to compensate creators creates a dead-weight loss, destroying value to the benefit of no one.
Of course, to do this, you need to determine a fair price. You might pay creators ahead of time to produce public domain content. That’s the classical state art subsidy. But it may also be possible to do it post-hoc. A variation on prediction markets provides one way to do this: have an auction (or a second price auction) for each new piece of content, or shares thereof, predicting what the intellectual property would be worth (optionally, let shares circulate for a while as well). In (say) 10% of cases, the high bidder (or bidders, if it’s being done by shares) pays the winning price(s) to the content owner, and acquires the IP; in the remaining 90%, the government pays the winning price and the content is released into the public domain.
And the final question is whether we really need government intervention to produce artistic works at all. It’s clearly the case that many great works of art were produced before copyright existed.
Copyright (or other state-based alternatives like those above) are not the only way creators can be compensated. Voluntary donations are an obvious one. Patronage is another: either centralized private patronage or distributed patronage like Kickstarter (see assurance contracts and dominant assurance contracts for more formal game theoretic versions of distributed patronage.
And, of course, amateurs have always and will continue to produce works without monetary compensation.
Copyright, or any alternative system, acts as a subsidy for the production of art (plus producing dead-weight costs). The existence of subsidies, even given that the non-government alternatives exist, likely leads to more art. But there’s at least an argument that doing so is not necessarily beneficial.
These are all super interesting, thank you! I definitely think if nothing else copyright terms should be drastically shortened (and penalties for violation made less harsh, and protections of fair use made more robust) but compulsory licensing and direct compensation sound potentially even better.